UAE's Aldar to refinance $490m loans with banks
Out of Aldar’s total debt of $1.6bn (AED6bn), bank loans fund $871m (AED3.2bn) – $490m (AED1.8bn) of which is now being refinanced, its CEO has said
Abu Dhabi-based developer, Aldar Properties, has agreed to refinance $490m (AED1.8bn) loan with longer maturities, its CEO said.
Aldar also reported a 9.7% rise in net profits in the second quarter of 2016.
The net profit of $179m (AED657m) in the three months to 30 June marks the eighth successive quarter of rising earnings for the group.
Out of Aldar’s total debt of $1.6bn (AED6bn), bank loans fund $871m (AED3.2bn) – $490m (AED1.8bn) of which is now being refinanced, Greg Fewer told Reuters.
"This achieves a major objective for us this year to extend the duration of our loans and at attractive terms for five, seven and ten years on a bullet basis," he said.
“Under a bullet loan, the amount borrowed is repaid at the end of the term.”
The $490m (AED1.8bn) of loans being refinanced were to mature at different points between December 2016 and 2018, according to Reuters.